Trades disagree with part of court’s field of membership ruling
WASHINGTON, DC (March 30, 2018) — The U.S. District Court for the District of Columbia today upheld two challenged portions of the National Credit Union Administration’s field of membership rule and struck down two provisions in a lawsuit filed against the agency by the American Bankers Association (ABA). The National Association of Federally-Insured Credit Unions (NAFCU), Credit Union National Association (CUNA) and CUNA Mutual Group, in a joint statement, disagreed with the court’s decision and reiterated their intent to continue to work in support of the agency’s authority to issue this rule.
The provisions declared to exceed the NCUA’s statutory authority include those that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and the increase to 1 million people the population limit for rural districts.
“Our organizations are pleased the court upheld components of the NCUA’s field-of-membership rule; however, we strongly disagree with the court’s decision that aspects of the rule exceed the agency’s legal authority,” said NAFCU President/CEO Dan Berger, CUNA President/CEO Jim Nussle and CUNA Mutual Group President/CEO Robert Trunzo. “The field-of-membership rule is not only entirely consistent with the Federal Credit Union Act, but also credit unions must have the ability to grow and serve more Americans. As the parties consider their options going forward, we will continue to support the agency on this critical issue.”
This lawsuit was filed Dec. 7, 2016, by the ABA. CUNA, NAFCU and CUNA Mutual Group jointly filed an amicus brief in June 2017 supporting the FOM rule and the NCUA’s cross-motion for summary judgment.
About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
About NAFCU
The National Association of Federally-Insured Credit Unions (NAFCU) is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
Jacqueline Ortiz Ramsay
NAFCU Public Relations and Communications
Office:703-842-2820
jramsay@nafcu.org
About CUNA Mutual Group
CUNA Mutual Group is a financially strong insurance and investment company. For generations, we’ve partnered with credit union leaders to protect and grow their businesses, and help people plan, protect and invest for their future. CUNA Mutual Group offers commercial and personal insurance products; lending and payment security solutions; and retirement, investment and marketing services. Additional information about the company can be found at www.cunamutual.com.
Phil Tschudy
CUNA Mutual Group Public Relations
Office: 608-665-7188
philip.tschudy@cunamutual.com
